Investing.com - The euro fell to a five-day low against the U.S. dollar on Tuesday, as market sentiment waned after Moody’s ratings agency downgraded six European countries, adding to concerns over the worsening of the region’s debt crisis.
EUR/USD hit 1.3128 during late Asian trade, the pair’s lowest since February 7; the pair subsequently consolidated at 1.3136, shedding 0.39%.
The pair was likely to find support at 1.3077, the low of January 27 and resistance at 1.3202 the high of February 3.
Moody's downgraded six European nations earlier, including Spain and Italy, and warned it could downgrade top-rated sovereigns including the U.K., reminding investors that the region is still deeply mired in a debt crisis despite Greece’s recent steps to avoid a default.
Sentiment was lifted on Monday after the Greek parliament voted a series of fresh austerity measures needed to secure the country’s second EUR130 billion bailout tranche.
However, Athens must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a the bailout package.
Elsewhere, the euro was fractionally lower against the pound with EUR/GBP edging up 0.01%, to hit 0.8364.
Later in the day, France was to publish preliminary data on non-farm payrolls and the ZEW Centre for Economic Research was to release reports on economic sentiment in Germany and the wider euro zone.
In the U.S., official data was to be produced on retail sales, as well as reports on import prices and business inventories.
EUR/USD hit 1.3128 during late Asian trade, the pair’s lowest since February 7; the pair subsequently consolidated at 1.3136, shedding 0.39%.
The pair was likely to find support at 1.3077, the low of January 27 and resistance at 1.3202 the high of February 3.
Moody's downgraded six European nations earlier, including Spain and Italy, and warned it could downgrade top-rated sovereigns including the U.K., reminding investors that the region is still deeply mired in a debt crisis despite Greece’s recent steps to avoid a default.
Sentiment was lifted on Monday after the Greek parliament voted a series of fresh austerity measures needed to secure the country’s second EUR130 billion bailout tranche.
However, Athens must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a the bailout package.
Elsewhere, the euro was fractionally lower against the pound with EUR/GBP edging up 0.01%, to hit 0.8364.
Later in the day, France was to publish preliminary data on non-farm payrolls and the ZEW Centre for Economic Research was to release reports on economic sentiment in Germany and the wider euro zone.
In the U.S., official data was to be produced on retail sales, as well as reports on import prices and business inventories.